§ 30-10 — Participants in the Fund

(a) A licensee under this Code is subject to this Article and shall collect and pay assessments into the Fund as provided in Section 5-30. (b) Except as provided in subsection (c) of this Section, a person engaged in the business of a grain dealer or warehouseman but not licensed under this Code shall not participate in or benefit from the Fund and its claimants shall not receive proceeds from the Fund. (c) Participation of federal warehousemen. (1) A federal warehouseman may participate in the Fund. If a federal warehouseman chooses to participate in the Fund, it shall to the extent permitted by federal law: (A) pay assessments into the Fund; (B) be deemed a licensee and a warehouseman under this Code; (C) be subject to this Code; and (D) execute a cooperative agreement between itself and the Department. (2) The cooperative agreement shall, at a minimum, provide each of the following to the extent permitted by federal law: (A) Authorization for the Department to obtain information about the federal warehouseman including, but not limited to, bushel capacity of storage space, financial stability, and examinations performed by employees of the United States Department of Agriculture. (B) That the federal warehouseman submits itself to the jurisdiction of the Department and that it agrees to be subject to and bound by this Code and deemed a licensee under this Code. (C) That in the event of a failure of the federal warehouseman, the Department shall have authority to seize, liquidate, and collect upon all grain assets, collateral, and guarantees relating to the federal warehouseman as in the case of any other licensee. (D) Such other requirements as established by rule. (3) A federal warehouseman that participates in the Fund shall at a minimum meet the licensing requirements of this Code and shall comply with all requirements of a licensee and a warehouseman under this Code to the extent permitted by federal law. (d) A federal warehouseman that participates in the Fund or a warehouseman that desires to or has become a federal warehouseman cannot withdraw from participation in the Fund for the benefit of existing depositors until the occurrence of all of the following: (1) Payment in full by the federal warehouseman or withdrawing warehouseman of all assessments under subsection (a) of Section 5-30. (2) Payment in full by the federal warehouseman or withdrawing warehouseman of all assessments instituted under subsection (d) of Section 5-30 on or after an assessment determination date that occurs before the federal warehouseman or withdrawing warehouseman notifies the Department that it desires to withdraw from participation in the Fund and before the issuance by the Department of a certificate of withdrawal from the Fund. (3) The expiration of 30 days following the later of: (A) the date the federal warehouseman or withdrawing warehouseman has ceased providing its depositors with coverage under the Fund; (B) the date the federal warehouseman or withdrawing warehouseman has posted at each of its locations a notice stating when it will cease providing its depositors with coverage under the Fund; (C) notification of all potential claimants by the federal warehouseman or withdrawing warehouseman of the date on which it will cease providing its depositors with coverage under the Fund; and (D) Completion of an audit and examination satisfactory to the Department as provided for in this Code and by rule, which is to be the Department's final examination. (4) Obtaining releases of liability from all existing depositors or posting collateral with the Department for 270 days after withdrawing from the Fund in an amount equal to the liability to existing depositors who have not executed releases before the completion of the Department's final examination. (5) Compliance with all notification requirements as provided for in this Code and by rule. (6) Issuance by the Department of a certificate of withdrawal from the Fund when the federal warehouseman or withdrawing warehouseman has met all requirements for withdrawal from participation in the Fund. (e) Before a federal warehouseman or a warehouseman that desires to or has become a federal warehouseman may withdraw from participation in the Fund, it must pay for an audit and examination and must provide to the Department all names and addresses of potential claimants for the purposes of notification of withdrawal of participation in the Fund.

Legislative History

(Source: P.A. 93-225, eff. 7-21-03.)